2015 (4) TMI 281 - HC - Indian Laws

Debarring of petitioner from dealing with excise department of the State in any manner for a period of five years - business of foreign liquor - Balcklisting of petitioner - held that - Excise Commissioner was satisfied with the fact that the petitioners have obtained the label registration on the basis of false affidavit and forged documents and accordingly debarred them from dealing with the excise department of the State of Rajasthan in any manner for a period of five years. It is on that basis that the District Excise Officer has passed the order of blacklisting of the petitioners. The impugned order has been passed after due compliance of principles of natural justice and factual foundation of the impugned order has not been disputed. Blacklisting of the petitioner firm for a period of five years cannot be said to be in any manner excessive of harsh penalty. - None of the impugned orders passed by the Excise Commissioner and the District Excise Officer suffer from any illegality - Decided against Petitioner.

Summary

Issues:
Challenge to orders debarring petitioners from dealing with excise department for five years, Blacklisting of petitioner firm and related persons, Allegations of irregularities in supply of foreign liquor, Complaints regarding unauthorized registration, Debarment based on false affidavit and forged documents, Compliance with principles of natural justice, Bona fide contention of the petitioner.

Analysis:
The judgment involves a challenge by two petitioners against orders debarring them from dealing with the excise department for five years. The Excise Commissioner debarred the petitioners based on complaints regarding unauthorized registration for specific liquor brands. The petitioners were alleged to have obtained label registration through false affidavit and forged documents. The District Excise Officer subsequently blacklisted the petitioner firm and related individuals. The petitioners contended that the supply was made by their supplier, M/s Global Tax Free Traders Inc, and they had acted bona fide, but the court found these contentions baseless. The court noted that the impugned orders were passed after due compliance with principles of natural justice and upheld the debarring and blacklisting, considering them not excessive or harsh penalties.

The judgment further delves into the details of the irregularities in the supply of foreign liquor by the petitioner firm. The District Excise Officer registered a case under the Rajasthan Excise Act alleging discrepancies in the supplied wines compared to the export pass. Despite contentions of acting bona fide, the court found no illegality in the orders passed by the Excise Commissioner and the District Excise Officer. The court emphasized the importance of complying with legal procedures and upheld the findings of the authorities regarding the irregularities in the supply of liquor.

Moreover, the judgment discusses the complaints received regarding unauthorized registration for specific liquor brands and the subsequent show cause notices served to the petitioners. The Excise Commissioner found that the petitioners had obtained label registration based on false affidavit and forged documents, leading to their debarring from dealing with the excise department. The court dismissed the contention of the petitioners regarding their bona fide actions, highlighting the seriousness of using false means to obtain registrations in the liquor business. The court affirmed the decisions of the authorities based on the factual foundation and principles of natural justice.

In conclusion, the court dismissed the writ petition challenging the orders debarring the petitioners and blacklisting the firm. The court rejected the contention of the petitioners regarding their bona fide actions and upheld the penalties imposed by the authorities. The judgment underscores the significance of adhering to legal requirements and the consequences of using fraudulent means in obtaining registrations in the liquor industry.